Business news from Ukraine

PRODUCTION OF PAPER AND CARDBOARD IN JAN-MAY IN UKRAINE DECREASED BY 45%, CORRUGATED PACKAGING – BY 57%

Production of paper and cardboard in Ukraine in January-May of this year decreased by 44.7% compared to the same period in 2021 – to 198.2 thousand tons, corrugated packaging – by 57%, to 126.9 million sq. m, according to the statistics of the association “UkrPapir”.
According to the statistics provided by the association to the Interfax-Ukraine agency, if in January of this year the production of paper and cardboard lagged behind last year by 4.6%, and corrugated boxes exceeded by 3.5%, then already in January-March, taking into account suspension of many enterprises with the beginning of a full-scale war of the Russian Federation against Ukraine, the production of these products decreased by 44% and 54%, respectively.
At the same time, some of the enterprises that stopped work at the beginning of the war never resumed it – in particular, due to the damage received in Rubizhne, the largest Ukrainian manufacturer of corrugated packaging, the Rubezhnoye Cardboard and Container Plant, stopped working (but its “daughter” in the Kyiv region – Trypilsky packing plant).
According to information in the disclosure system of the National Commission for Securities and the Stock Market (NKTSBFR), a remote extraordinary meeting of the plant’s shareholders is scheduled for July 4 with the issue of transferring the location of the Rubezhsky CPC legal entity to Kyiv.
According to UkrPapir, the damaged Rogan cardboard factory in the Kharkiv region has not resumed work (and does not plan to).
From the producers of corrugated packaging, Dunapak Tavria LLC, located in the Kherson region, also does not work (it produced boxes for Novaya Poshta – IF), and the Mena Pak company in the Chernihiv region, according to information available to the association, was able to resume work in May.
Zmievskaya paper mill (Kharkiv region) after three months of forced downtime in May reported the production of 1863 tons of recycled paper against 783 tons in May 2021.
At the same time, after the February suspension of production, the industry leader Kyiv Cardboard and Paper Mill has been operating since March (in terms of the production of corrugated packaging last year – the second after Rubezhansky CPC), Zhydachevsky Pulp and Paper (Lvov region) and Izmail Cardboard (Odessa region), Malinsky paper factory and “Papir-Mal” (Zhytomyr region)
In addition, according to statistics, the Lviv Cardboard and Paper Company did not stop working, maintaining the output of paper and cardboard in January-May at the level of last year, Poninkovskaya (Khmelnytsky region) and Lutsk (Volyn region) cardboard and paper factories, Kokhavinskaya paper mill (Lviv region).
As reported, in 2021, the production of paper and cardboard in Ukraine increased by 9.8% by 2020, to 898.2 thousand tons, corrugated boxes – by 5.9% to 752.9 million square meters.
Association “UkrPapir” unites 35 enterprises and companies, in particular 20 manufacturers of cardboard and paper products and printing enterprises, 11 distributors, two suppliers and suppliers of waste paper.

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UKRAINE REFUSES TO BAN IMPORT OF NEWSPRINT FROM RUSSIA

The Cabinet of Ministers of Ukraine has changed the date of resolution No.269 on expanding the list of goods prohibited for import into the customs territory of Ukraine, originating from Russia and excluded from it one item, namely, newsprint in rolls or sheets.

Resolution No.269, which had previously disappeared from the government’s website, was re-promulgated on it, but is now dated April 1, together with the original date of March 29.

The document continues to indicate that it will enter into force ten days after publication.

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FROM APRIL UKRAINE TO BAN IMPORT OF WHEAT, SUNFLOWER OIL, PAPER FROM RUSSIA

The Cabinet of Ministers has supplemented the list of goods originating from the Russian Federation, prohibited for import into Ukraine, with wheat, sunflower oil, detergents, and paper.
According to the document, the list of prohibited goods was also replenished with surfactants, newsprint, cardboard, kraft paper and kraft cardboard, toilet paper, cosmetic napkins, hand towels, tablecloths and napkins.
The list also includes containers, boxes, bags, packing bags, ropes made of other alloy steels, drilling tools, other trolleys and undercarriage balancing trolleys, axles, wheels and their parts, according to the resolution.
The resolution comes into force ten days after its publication.

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VOLUME OF MARKETABLE OUTPUT OF KYIVSKY CARDBOARD PAPER MILL TOTALES UAH 2.74 BLN IN JAN-JUNE 2020

The volume of marketable output of Kyivsky cardboard paper mill (Obukhiv, Kyiv region), a leader in Ukraine’s pulp and paper industry in terms of production and sales, totaled UAH 2.742 billion in January-June 2020, which is 1.5% more than the same figure for the first half of 2019.
As reported, in January-May of this year, the plant’s production volume was practically at the last year’s level.
According to the statistics of the Ukrpapir association, in natural terms in January-June the plant slightly (by 1%) increased production of corrugated packaging, to almost 113 million square meters, maintaining the second position in terms of its production in the country after Rubizhne plant (together with Trypilsky packaging plant).
In addition, the rate of growth in the production of base paper for sanitary and hygienic products slightly slowed down, to 4.9% (compared to 6.7% in five months), to 42,200 tonnes, and production of toilet paper in rolls to 4.9% from 6.1%, to 229.3 million units.
At the same time, output of cardboard decreased slightly, by 1% (compared to 3.1% in five months), to 96,180 tonnes, in particular production of boxboard increased by 21.6%, to 31,590 tonnes, while container (including paper for corrugation) decreased by 9.2%, to 64,590 tonnes.

Kyivsky cardboard paper mill is one of the largest cardboard and paper producers in Europe. It employs almost 2,200 people. It sells produce to almost 700 companies in Ukraine, some CIS member states and the rest of the world.

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KOKHAVYNSKA PAPER FACTORY INCREASES PRODUCTION IN JAN

Kokhavynska paper factory (Lviv region), a tissue and toilet paper producer (the Kokhavynka trademark), in January 2020 increased production by 2.8% compared with January 2019, to UAH 42.09 million.
According to the UkrPapir association, production of paper at the factory in kind decreased 5.7%, to 3,150 tonnes. At the same time, production of toilet paper fell by 10.5%, to 8.6 million rolls (a total of 55 million rolls was made in Ukraine in January 2020, a rise of 1.7%).
Kokhavynska paper factory has been operating since 1939. The factory producers base paper for hygienic goods, toilet paper and paper towels. The capacity of paper making machines is 19,000 tonnes per year, processing equipment 90 million rolls a year.
The factory exports about 40% of the products. The main consumers abroad are the Czech Republic, Romania, as well as companies from Belarus, Moldova, Hungary, and the Netherlands.
As reported, in 2019, the factory produced goods worth UAH 547.64 million, which is 1.6% more than a year earlier, paper production grew by 2.3%, to 37,900 tonnes.

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KOKHAVYNSKA PAPER FACTORY INCREASES PRODUCTION

Kokhavynska paper factory (Lviv region), a tissue and toilet paper producer (the Kokhavynka trademark), in 2019 increased production by 1.6% compared with 2018, to UAH 547.64 million.
According to the Ukrpapir association, production of paper at the factory in kind increased 2.3%, to 37,900 tonnes. At the same time, production of toilet paper rose by 2.4%, to 113.69 million rolls (a total of 677.38 million rolls was made in Ukraine in 2019, a rise of 4.4%).
Kokhavynska paper factory has been operating since 1939. The factory producers base paper for hygienic goods, toilet paper and paper towels. The capacity of paper making machines is 19,000 tonnes per year, processing equipment 90 million rolls a year.
The factory exports about 40% of the products. The main consumers abroad are the Czech Republic, Romania, as well as companies from Belarus, Moldova, Hungary, and the Netherlands.
As reported, in 2018, the factory produced goods worth UAH 538.78 million, which is 27.8% more than a year earlier, paper production grew by 11%, to 37,050 tonnes.

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